Dr. Reddy’s Q1 FY13 Financial Results

Dr. Reddy’s Q1 FY13 Financial Results Q1 FY13 Revenues at `25.4 billion, YoY growth of 28% Q1 FY13 PAT at `3.4 billion, YoY growth of 28%
By: Dr. Reddy's Laboratories
 
July 19, 2012 - PRLog -- Dr. Reddy’s Q1 FY13 Financial Results
Q1 FY13 Revenues at `25.4 billion, YoY growth of 28%
Q1 FY13 PAT at `3.4 billion, YoY growth of 28%

Hyderabad, India, July 19th, 2012: Dr. Reddy’s Laboratories Ltd.  today announced its unaudited consolidated financial results for the quarter ended June 30, 2012 under International Financial Reporting Standards (IFRS).

Key Highlights
o   Consolidated revenues at `25.4 billion in Q1 FY13, year-on-year growth of 28%, driven by healthy growth in key markets of North America, Russia & other emerging markets in Global Generics segment.
o   EBITDA of `5.1 billion in Q1 FY13, 20% of revenues.
o   PAT of `3.4 billion in Q1 FY13, 13% of revenues & recorded YoY growth of 28%.
o   During the quarter, the company launched 33 new generic products, filed 18 new product registrations and filed 7 DMFs globally.






All figures in millions, except EPS          All US dollar figures based on convenience translation rate of 1USD = `55.57

Dr. Reddy’s Laboratories Limited and Subsidiaries
Unaudited Consolidated Income Statement
Particulars   Q1 FY13   Q1 FY12   
    ($)     (`)    %    ($)     (`)    %   Growth %
Revenue   457    25,406    100    356    19,783    100    28
Cost of revenues   214    11,865    47    166    9,228    47    29
Gross profit   244    13,541    53    190    10,555    53    28
Operating Expenses                           
Selling, general and administrative expenses   149    8,277    33    122    6,755    34    23
Research and development expenses   28    1,564    6    22    1,197    6    31
Other operating (income) / expense   (4)   (218)   (1)   (3)   (186)   (1)   17
Results from operating activities   70    3,918    15    50    2,789    14    41
Net finance (income) / expense   4    212    1    1    46    0    361
Share of (profit) / loss of equity accounted investees   (0)   (19)   (0)   (0)   (4)   (0)   375
Profit / (loss) before income tax   67    3,725    15    49    2,746    14    36
Income tax (benefit) / expense   7    365    1    2    120    1    205
Profit / (loss) for the period   60    3,360    13    47    2,627    13    28
                     
Diluted EPS   0.4    19.7        0.3    15.5        28
                     

Profit Computation:
EBITDA Computation   Q1 FY13   Q1 FY12
   ($)   (`)   ($)   (`)
PBT   67    3,725    49    2,746
Net Interest Expenses / (Income)    1    44    4    221
Depreciation   16    896    15    828
Amortization    7    400    7    405
Reported EBITDA   91    5,065    76    4,201
Adjustments of exceptional items:                
One-time charge of Voluntary Retirement Scheme          2    136
Adjusted EBITDA    91    5,065    78    4,337

PAT Computation   Q1 FY13   Q1 FY12
   ($)   (`)   ($)   (`)
PAT    60    3,360    47    2,627
Adjustments:                
Voluntary retirement scheme          2    136
Tax adjustment    (5)   (306)   (6)   (342)
Adjusted PAT   55    3,054    44    2,421

Segmental Analysis
Global Generics
Revenues from Global Generics segment at `19.1 billion in Q1 FY13, year-on-year growth of 32% driven by key markets of North America, Russia & other emerging markets.

o   Revenues from North America at `7.9 billion in Q1 FY13 grew by 27% in USD terms, over previous year.  
•   Growth was largely driven by new product launches of clopidogrel, OTC lansoprazole and was further supported by key products of ziprasidone, fondaparinux, quetiapine, etc, marginally offset by regular year-on-year price declines in existing product basket.
•   5 new products were launched during the quarter including clopidogrel 300 Mg which was launched under 180-day exclusivity.
•   29 products of prescription portfolio feature among the Top 3 ranks in market shares           (Source: IMS Health Volumes April 2012).
•   During the quarter, 4 ANDAs were filed. Cumulatively 73 ANDAs are pending for approval with the USFDA of which 36 are Para IVs and 6 are with FTF status.

o   Revenues in Russia and Other CIS markets at `4.2 billion in Q1 FY13 represented year-on-year growth of 38%.
   Revenues in Russia at `3.5 billion in Q1 FY13 was the highest ever from this market and represented year-on-year growth of 30% in Rouble terms.
   Growth was driven by new product launches, volume increase across key brands and OTC portfolio.
•   Revenues in Other CIS markets at `0.65 billion in Q1 FY13 grew by 22% over previous year.

o   Revenues in India at `3.5 billion in Q1 FY13 grew by 19% over previous year.
•   Growth driven by volume increase across most of our key brands.
•   Biosimilars portfolio grew by 15% over previous year.
•   10 new brands were launched during the quarter.

o   Revenues from Europe at `2.2 billion in Q1 FY13 grew by 14% over previous year.
•   Revenues from Germany at `1.5 billion in Q1 FY13 grew by 17% in Euro terms over previous year. This growth was largely due to the products supplied under the AOK tender won last year.




Pharmaceutical Services and Active Ingredients (PSAI)
•   Revenues from PSAI are at `5.5 billion in Q1 FY 13, year-on-year growth of 14%.
•   During the quarter, 7 DMFs were filed globally, with 1 each in the US and Europe. The cumulative DMF filings as of 30th June 2012 are 550.
Income Statement Highlights:
o   Gross profit margin at 53% in Q1 FY13 remained flat versus Q1 FY12. Gross profit margin for Global Generics and PSAI business segments were at 59% and 31% respectively.
o   Selling, General and Administration (SG&A) expenses including amortization at `8.3 billion increased by 23% over previous year. This increase is on account of year-on-year salary increments, higher sales & marketing costs and the effect of rupee depreciation against multiple currencies.
o   Research & development expenses for Q1 FY13 at `1.6 billion is at 6% to sales.
o   Net Finance expense was at `212 million in Q1 FY13 versus `46 million in Q1 FY12. The change is on account of :
•   Net forex loss of `209 million in Q1 FY13 versus net forex gain of `158 million in Q1 FY12. Q1 FY13 includes a charge of `297 million due to time value of options. Adjusting the impact of this charge, net forex gain on P&L is at `88 million in Q1 FY13.
•   Net interest expense of `44 million in Q1 FY13 versus `221 million in Q1 FY12. This decrease in expense is largely on account of higher interest income from FD & mutual fund.
•   Profit on sale of investments of `41 million in Q1 FY13 versus `17 million in Q1 FY12.
o   EBITDA of `5.1 billion in Q1 FY13, 20% of revenues and recorded year-on-year growth of 21%.
o   Profit after Tax in Q1 FY13 at `3.4 billion recorded year-on-year growth of 28%.
o   Diluted earnings per share in Q1 FY 13 were `19.7.
o   Capital expenditure in Q1 FY13 was `1.9 billion.

Appendix 1:  Key Balance Sheet Items                                (in millions)
Particulars    As on 30th Jun 12     As on 31st Mar 12
    ($)     (`)     ($)     (`)
Cash and cash equivalents   384    21,353    327    18,152
Trade receivables   449    24,975    456    25,339
Inventories   370    20,580    348    19,352
Property, plant and equipment   622    34,550    598    33,246
Goodwill and Other Intangible assets   245    13,597    243    13,529
Loans and borrowings (current & non current)   638    35,430    580    32,210
Trade payables   157    8,750    171    9,503
Equity   1,074    59,664    1,034    57,444


Appendix 2:  FY13 Revenue Mix by Segment                          (in millions)
   Q1 FY13   Q1 FY12    Growth %
    ($)     (`)    %    ($)     (`)    %   
Global Generics    343    19,066    75    260    14,424    73    32
   North America       7,920    42       5,756    40    38
   Europe       2,178    11       1,917    13    14
   India       3,482    18       2,936    20    19
   Russia & Other CIS       4,167    22       3,018    21    38
   RoW       1,319    7       797    6    65
PSAI    99    5,527    22    87    4,832    24    14
   North America       1,064    19       842    17    26
   Europe       2,233    40       1,693    35    32
   India       611    11       662    14    (8)
   RoW       1,619    29       1,635    34    (1)
Proprietary Products & Others    15    813    3    9    527    3    54
Total    457    25,406   100    356    19,783    100    28





Contact Information
Investors and Financial Analysts:
Kedar Upadhye at kedaru@drreddys.com or on +91-40-66834297
Saunak Savla at saunaks@drreddys.com or on +91-40-49002135
Milan Kalawadia (North America) at mkalawadia@drreddys.com or on +1-9082034931

Media:
Rajan S at rajans@drreddys.com or on +91-40- 49002445

Note: All discussions in this release are based on unaudited consolidated IFRS financials.
End
Source:Dr. Reddy's Laboratories
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Location:Maharashtra - India
Subject:Earnings
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